In another twist to the debate over the current revenue allocation formula, northern leaders have rejected the move by the Federal Government to pay 13 per cent derivation funds to host states of solid minerals in the country.

Last month, speaking on behalf of his colleagues, the Chairman of the Northern Governors Forum and the Governor of Niger State, Babangida Aliyu, called for a review of the revenue allocation formula ‘to reflect current realities.’

The demand of the 19 northern governors, which was re-echoed by several leaders and groups in the region, stated that the current revenue allocation formula was unfair to northern states and that the oil-producing states that receive 13 per cent derivation funds were getting more money than they had the capacity to execute.

However, reacting to this recent move to placate the North, the Convener of the Coalition of Northern Leaders, Academics, Professionals and Businessmen, Dr. Junaid Mohammed, described it as an abuse of the Constitution and an insult to the North.

Mohammed said what they were demanding was a total review of the revenue allocation law and not “the shortcut,” employed to appease the North.

“As far as we are concerned, the current revenue allocation formula in the Constitution is illegal and the FG does not have the right to alter it, without a proper constitutional amendment.

“So the 13 per cent derivation for solid-minerals producing states is illegal and an abuse of the constitution. If government thinks that the only way to appease political opponents is to abuse the constitution, then it is unfortunate.

“There is no shortcut to amending that law. As far as we are concerned the entire revenue allocation law must be quashed and new submissions made to the National Assembly,” he said.

Mohammed added that it was not proper for the government to approve 13 per cent derivation on solid minerals when actual mining and revenue generation had not started.

“It is not even sensible as an economic move. At the current level of exploitation, the solid minerals in the North are non-existent. You cannot give us 13 per cent derivation on something that does not exist. And if the government or anybody thinks he can appease the North by this kind of insult, then the person must be a fool or thinks we are fools,” he said.

But the Chairman, Revenue Mobilisation, Allocation and Fiscal Commission, Mr. Elias Mbam, reportedly said the 13 per cent derivation on solid minerals which will commence next month was constitutional.

“The payment is a constitutional matter, which states that derivation should not be less than 13 per cent and derivation is not limited to oil and gas. This also includes all other mineral resources.”

The most recent report of the Nigerian Geological Survey shows that Nigeria has over 40 solid mineral resources and they are mostly found in the North.

The list showed that Gold had been discovered in Kano, Kaduna, Edo, Kebbi, Kwara, Ogun, Osun, Zamfara states and the Federal Capital Territory; Tantalite in Bauchi, Ekiti, FCT, Kaduna, Kwara, Nasarawa, Osun, Oyo and Taraba states; while gemstones have been located in Bauchi, Borno, Cross River, Ekiti, Kano, Kebbi, Kwara, Osun, Oyo, Plateau and Zamfara states.

However some solid minerals were found only in the North. They include Silver in Nasarawa State, Uranium in Jigawa State, Copper in Bauchi, Marl in Kano and Yobe states, Chromite in Zamfara, Trona in Gombe, Jigawa and Yobe states, Zinc in Kano and Plateau states, Magnesite in Adamawa state and Diatomite in Yobe State.

http://www.punchng.com/news/northern-elders-reject-fgs-13-derivation-on-solid-minerals/

lol. they don't want even 90% derivation on minerals. What they want is a bigger chunk of oil money.

na wa o.

Very foolish and lazy elders

It is better to have state taxes like the USA. that way, state can directly collect the money from the companies and there will be no mago mago.

If the have 100% Derivation on Oll, will they be able to take almajiri off the street?

These pple are out for trouble; if this mata is not addressed properly and wisely, it would definitely escalate into something real big. These aboki's just wan frustrate GEJ. They started with Boko-Haram and now this and more to come.

yong_noble: These pple are out for trouble; if this mata is not addressed properly and wisely, it would definitely escalate into something real big. These aboki's just wan frustrate GEJ. They started with Boko-Haram and now this and more to come.

They will frustrate themselves. Other regions are making some sort of progress or the other, while investments are piling out of the core-North, Just today on NL, somebody advertised houses in Hotoro Estate Kano that previously went for 250,000 per annum for 25,000 per annum.

What the North is saying is that the current derivation formula is not being implemented according to the constitution, if anybody has anybody has a valid argument against that position let him do so; otherwise the sentiments and insults are really uncalled for.

Me_Aboki: What the North is saying is that the current derivation formula is not being implemented according to the constitution, if anybody has anybody has a valid argument against that position let him do so; otherwise the sentiments and insults are really uncalled for.

Does the constitution only concern oil?

All these animals that always talking of loots sharing without an atom of brain to create,preserve and pass on.

A people that are so stu-pid to the point that what they cosider as reality and reasonableness can not make any realistic sense or appeal to a normal child that uses his/her cognitive instincts

[pre][/pre]
good question.
Does it only concern oil or every other natural resources?

Beaf:

Does the constitution only concern oil?

OMG! My cheeks, My cheeks hurt from laughing . .

To be fair the current revenue allocation system is not fair. Everyone should keep what he produces and pay tax to the central government. I think the revenue allocation should be reviewed to favour fiscal federalism

antartica: All these animals that always talking of loots sharing without an atom of brain to create,preserve and pass on.

A people that are so stu-pid to the point that what they cosider as reality and reasonableness can not make any realistic sense or appeal to a normal child that uses his/her cognitive instincts

^^^^And you really think you sounded sensible, don't you? What cretinous rubbish - typical arrogant empty headed Odechukwu, PhD without intelligence. You think every Northerner is an olodo like you.

Beaf:

Does the constitution only concern oil?

Your sarcasm stinks and adduces to my suspicion that you are bereft of valid argument against the issue at hand.

Me_Aboki:
Your sarcasm stinks and adduces to my suspicion that you are bereft of valid argument against the issue at hand.

My broda, no vex. Am simply aksing you a kueshion.